Stocks Radar: Bharti Airtel, Dredging Corporation, Manappuram Finance
Indian equity benchmarks opened lower in the second session of the new trading year following Asian peers that fell amid growing concerns about a slowdown in China. The BSE Sensex and the NSE Nifty 50 Index traded flat at 35,241.10 and 10,605, respectively, as of 10:50 a.m.
The market breadth was tilted in favour of buyers. Seven of the 11 sectoral gauges advanced, led by a 1.2 percent rise in the NSE Nifty Pharma Index. The NSE Nifty Metal Index was the top loser, down 0.76 percent.
Here Are The Stocks Moving The Market This Morning
Manappuram Finance Falls After Q2 Results
Shares of consumer finance company fell as much as 1.4 percent to Rs 85.45 apiece.
Net profit of the company rose 39 percent year-on-year to Rs 222.2 crore, according to its exchange filing. Also, the board of Manappuram Finance approved an equity infusion of Rs 100 crore in its home finance arm and Rs 150 crore in micro finance arm.
A dividend of Rs 0.55 a share is payable on Dec. 5 and the stock will trade ex-dividend on Nov. 19.
Stocks Reacting To Earnings
MRF (Q2, Year-On-Year)
- Stock fell as much as 1.6 percent to Rs 64,513 apiece.
- Revenue up 9.4 percent at Rs 3,928.2 crore.
- Net profit down 12.3 percent at Rs 263 crore.
- Ebitda down nearly fourfold at Rs 581.1 crore.
- Margin stood at 14.8 percent against 16.9 percent.
- Other expenses at Rs 691.1 crore versus Rs 561.7 crore.
Aban Offshore (Q2, YoY)
- Stock fell 3.6 percent to Rs 80 apiece.
- Revenue down 33.2 percent to Rs 219.8 crore.
- Net loss widened to Rs 38.1 crore from Rs 27.8 crore.
- Ebitda loss widened to Rs 388.3 crore from Rs 234.3 crore.
- Other income at Rs 63.8 crore versus Rs 17.6 crore.
Aditya Birla Capital (Q2, YoY)
- Shares fell 2.1 percent to Rs 104.25 apiece.
- Revenue up 33.1 percent at Rs 3,590.5 crore.
- Net profit down 12 percent at Rs 197.9 crore.
- Fees and commission expense at Rs 181.2 crore versus Rs 67.7 crore.
- Premium up 39 percent at Rs 1,657 crore.
- Lending book up 30 percent to Rs 57,945 crore.
(prices as of 9:37 a.m.)
Bharti Airtel Becomes Top Nifty Loser On Moody’s Ratings Review
Shares of the telecom operator snapped their five-day gaining streak and fell as much as 5.7 percent to Rs 288.70 apiece.
Moody’s placed Bharti Airtel’s current rating of Baa3 on review for downgrade as it expects the company’s cash generation to remain weak and leverage to be elevated.
The stock declined 42.3 percent so far this year compared with a 4.4 percent gain in the BSE Sensex, Bloomberg data showed.
Mphasis Swings After Buying U.S.-Based Firm
Shares of the IT company fluctuated between gains and losses to trade at Rs 921 apiece.
Mphasis acquired U.S.-based Stelligent Systems for $25 million, according to an exchange filing. Stelligent is a technology services company that provides DevOps automation services for Amazon Web Services.
The stock trades at 21.3 percent trailing 12-month earnings per share and 17 times its estimates for the current year, according to Bloomberg data.
Dredging Corp Hits Upper Circuit After Government Divests Stake
Shares of the dredging services operator hit upper circuit after gaining 10 percent at Rs 384.10 apiece.
The Union Cabinet approved a strategic sale of the government’s stake in Dredging Corporation of India Ltd. to consortium of four ports. The government holds 73.44 percent in the company.
Linde India Surges Most In Five Years
Shares of the Kolkata-based chemical company rose as much as 20 percent to Rs 582.65 apiece.
The company’s founder BOC Group sought a proposal to delist the shares, according to an exchange filing. The board will consider the delisting proposal on Nov. 14.
The trading volume is close to 92 times its 20-day average, according to Bloomberg data.
Titan Fluctuates Ahead Of Earnings
Shares of the country’s largest gold jewellery seller swung between gains and losses to trade at Rs 851.50 apiece.
The company is schedule to report its second quarter results today.
September-Quarter Preview (Year-On-Year)
- Net sales expected to rise 22.6 percent to Rs 4,143 crore.
- Profit seen to rise 20.3 percent to Rs 367 crore.
- Ebitda expected to rise 24.3 percent to Rs 421 crore.
- Ebitda margin to expand 10 basis points to 12.6 percent.
The stock trades at 66.2 times trailing 12-month earnings per share and 52 times its estimates for the current year, Bloomberg data showed.